| Fri 10 Jan 2003, 11:02 | | SABMiller announces Tumwater Brewery closure plan |
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SABMiller announces Tumwater Brewery closure plan
SABMiller Plc
JSE ALPHA CODE : SAB
ISSUER CODE : SOSAB
ISIN CODE : GB0004835483
SABMiller announces Tumwater Brewery closure plan
London and Johannesburg, 10 January 2003. SABMiller plc, through its wholly
owned subsidiary, Miller Brewing Company (MBCo), has announced plans to close
its Tumwater Brewery, in Washington State, USA.
The planned closure, which will be effective from 1 July 2003, will improve
MBCo`s overall operating costs and brewing efficiency across the company.
Tumwater Brewery is the smallest of MBCo`s breweries, producing 1.7 million
barrels (2 million hectolitres) in 2002, and significant expenditure is needed
to update the brewery beyond the planned closing date. Production at the
brewery will be phased to other MBCo breweries before the planned closure takes
place.
Tumwater Brewery has about 400 employees. MBCo will offer severance benefits
and outplacement services to affected salaried employees, and is in discussions
with unions regarding its 346 hourly paid employees at the brewery.
The impact of the closure plan will not affect current distribution arrangements
of MBCo
trademark brands in the area, since these have never been brewed at Tumwater.
Production of Hamm`s, Henry Weinhard`s, Mickey`s and Olde English 800, as well
as MBCo`s flavoured malt beverages, and a number of brands brewed under contract
for Pabst, will be moved to other breweries as part of the closure plan, and
availability of these beverages to consumers will continue as before.
Ends
Notes to editors:
SABMiller is the world`s second largest brewer by volume with pro forma 2001/02
lager volumes in excess of 120 million hectolitres and is also the world`s
leading brewer in developing markets. It has 112 brewing operations and over
69,000 employees, in 24 countries across Africa, Central and Eastern Europe,
North and Central America and Asia. It has a portfolio of strong brands and
leading market shares in many of the countries in which it has brewing
operations. Outside the USA, SABMiller is one of the largest bottlers of Coca-
Cola products in the world. SABMiller is listed on the London and Johannesburg
stock exchanges and has a market capitalisation of US$7 billion (approximately
R60.8 billion).
The Tumwater brewery is the smallest of MBCo`s seven breweries (excluding the
two specialist Leinenkugel breweries which operate as a subsidiary of MBCo) and
was acquired from Pabst Brewing Company in 1999. In 2002 it brewed 1.7 million
barrels of the four brands that MBCo acquired from Pabst in 1999 and the former
Stroh Brewery Company (Hamm`s, Henry Weinhard`s, Mickey`s and Olde English 800),
as well as MBCo`s flavoured malt beverages and a number of brands under contract
for Pabst.
Contacts:
SABMiller plc
Tel: +44 20 7659 0100
Nick Chaloner
Director of Communications
Tel: +44 20 7659 0119
Mob: +44 7880 502 755
Anna Miller Salzman
Head of Investor Relations
Tel: +44 20 7659 0106
Mob: +44 7973 837 070
Ciaran Baker
Head of Corporate Communications
Tel: +44 20 7659 0120
Mob: +44 7979 954 493
This announcement is available on the SABMiller website,
HYPERLINK "http://www.sabmiller.com"
Date: 10/01/2003 09:00:00 AM Produced by the JSE SENS Department
